The best way to get a personal loan with a 500 credit score is to find a lender that caters to borrowers with lower credit scores. There are a number of different types of “bad credit loans” out there. The hard part is knowing which ones are safe, and which ones are right for your specific financial situation.
A 500 credit score is considered to be “poor credit” according to the FICO credit scoring system. This means that lenders may view you as a risky investment when it comes to lending you money. Your credit score is the three-digit number that represents how trustworthy and financially reliable you are. Having a low credit score means that you have exhibited poor financial habits in the past. Luckily, it doesn’t have to stay like this.
Improving your credit score will help you to qualify for better personal loans, new forms of credit, and more favorable interest rates. Even if you have a poor credit score right now, through hard work and dedication you can improve it and come out the other side as a better borrower. Below is a list of a few steps you can take to start improving your credit score today:
Start with these tips, stick to them, and eventually you’ll start to see your credit score improving. It may take a little while, and it isn’t easy, but it will be worth it in the long run.